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Indian shares rose to their highest-ever close and market capitalisation on belief that Federal Reserve chairman Ben Bernanke’s resumption of currency printing to revive the US economy would benefit emerging markets more than developed ones. 

Equities and commodities rallied across the globe after Bernanke declared a $600-billion bonds purchase programme, termed Quantitative Easing 2, or QE2, aimed at lowering borrowing costs that could boost demand in the US. 
Some hope that an all-time high for the indices may coincide with the special onehour Muhurat trading to celebrate the Gujarati New Year on Diwali. 
http://economictimes.indiatimes.com/markets/stocks/market-news/Fed-QE2-move-Muhurat-hope-fire-Sensex-to-record-close/articleshow/6874378.cms

The Indian stock markets rallied fiercely on Thursday, gaining 427.83 points and propelling the Sensex to an all-time high of 20,893.57. It was nearly three years back on January 8, 2008 when the 30-scrip Sensex had closed at the previous high of 20,873.33. Today, India’s market capitalisation now stands at $1.66 trillion, way below China’s $3.87 trillion but much above those of Asian peers like Korea, which has a market capitalisation of $1.03 trillion and Taiwan’s $0.8 trillion.

The rally was fuelled by the abundance of liquidity across the world seeking returns in emerging economies as bond yields in the developed world drop to new lows. FIIs have bought close to $27 billion worth of equities so far in 2010, the highest in any year since they were allowed into the Indian markets in 1992. On Thursday alone, FIIs are reported to have bought more than $1 billion worth of stocks, including the newly-listed CIL. With $600 billion expected to flow into the system as part of Quantitative Easing II, flows into emerging markets including India could remain strong.

Said Deepak Parekh, chairman, HDFC: “The index is a barometer for the economy. We are the second-fastest growing economy in the world and should grow at a near to 9% GDP. Foreign investors are looking for investment opportunities and find our markets attractive.”

http://www.financialexpress.com/news/Sensex-closes-at-all-time-high--cheers-India-Inc-on-Diwali-eve/707261/

Food inflation continued to decline for the third consecutive week, climbing down to 12.85% in the week ended October 23 as vegetable prices softened on improved supplies. A sliding food price index will some relief to policymakers in their efforts at controlling a stubborn headline inflation and will also ease pressure on the RBI on raising key rates further.

Food inflation dipped by 0.9 percentage points from 13.75% in the previous week as vegetable prices eased by nearly 3% week-on-week. But items such as meat, egg and fish rose by 28.85% year-on-year. Pulses, another protein-based food, turned expensive by 0.67%. 

Read more: Food inflation dips to 12.85% - The Times of India http://timesofindia.indiatimes.com/business/india-business/Food-inflation-dips-to-1285/articleshow/6872600.cms#ixzz14N7zUGCG